The US economy is growing much faster than thought, official figures showed,
as the rate was revised up from 1.7pc to 2.5pc for the second quarter of
this year.

The latest figure represented a more than doubling of the 1.1pc rate recorded for January to March, as surging exports – climbing at their fastest pace in two years - helped to offset reduced state spending.

The news will boost confidence that the world’s biggest economy is turning a corner, with many economists predicting growth will continue to pick up pace in the second half of the year.

The strong economic data will also support expectations the Federal Reserve will next month start to withdraw its economic stimulus by “tapering” off its vast quantitative easing, or money-printing, effort.

“We will have to wait for next Friday’s labour market report to be able to say with more confidence that this is in the bag,” said Rob Carnell, economist at ING Bank.

“Much can happen in the meantime to scupper these thoughts, including of course a military strike on Syria, and likely slump in investor confidence in the aftermath.”